Used van prices set to dip

According to EurotaxGlass's the strong prices were primarily caused by limited supply and there is now pressure for values to move down towards more sustainable levels. “It was inevitable that inflated price levels on used stock would eventually need to fall in line,” said George Alexander, EurotaxGlass's chief commercial vehicle editor. “Rather than viewing this as a major setback, it would be better to reflect on just how resilient used price levels have proven over the past couple of years.” He also pointed out the situation was being complicated by manufacturers applying variable discounts according to the prevailing trading conditions, which have an immediate knock-on effect to late-year stock. BCA confirmed it had also noticed this trend among used car-sized vans and said prices were easing off as the market received bigger volumes from corporate fleets. The auction house also pointed out that the latest interest rate rise would impact new van sales. “There's little doubt that the fifth interest rate hike since August last year has hit the single van operators relatively hard,” said Duncan Ward, BCA's UK business development manager – commercial vehicles. “The small businessman who probably has a business loan and a mortgage to pay is now less likely to come into the market than – for example – a year ago. Ideas of a new used van are likely to be put to one side, possibly until the autumn months,” he said. Meanwhile Manheim predicted the used van market will dip this month as buyers and vendors alike take a holiday. “Vendors holding out for high prices may find they get their fingers burnt as the market begins its downward slide,” warned Alex Wright, Manheim's commercial vehicle sales director. “Stock is still limited, with low mileage example in good condition still selling at top prices. Overall, there is a lot of the same used product around the country and the majority is in poor condition with high mileage and prices are generally difficult to predict.”